Key facts
- European Council President António Costa is visiting Berlin, Warsaw, and Madrid to discuss new EU taxes for the bloc's next long-term budget.
- The EU's Multiannual Financial Framework proposal for 2028-2034 is valued at €2 trillion.
- Germany, the EU's largest net contributor, is facing economic pressure and a weak economy.
- Spain advocates for preserving traditional EU spending areas like cohesion, agriculture, and fisheries, while also supporting increased investment in defense, security, and competitiveness.
- EU leaders aim to reach an agreement on the budget by the end of the year.
European Council President António Costa is undertaking a tour of EU capitals, including Berlin, Warsaw, and Madrid, to build consensus for new EU-wide taxes that could fund the bloc's next long-term budget for 2028-2034. The proposed levies, referred to as 'own resources,' are intended to avoid increasing national contributions to Brussels, a move resisted by countries like Germany, the bloc's largest net contributor.
Costa's tour aims to lay the groundwork for a budget agreement by the end of the year, before national elections in several member states in 2027 could complicate negotiations. The European Commission has proposed a €2 trillion Multiannual Financial Framework, but member states are divided on spending priorities, with some advocating for increased defense and security spending while others seek to protect traditional areas like agriculture and cohesion funds.
Germany, facing economic pressures and the rise of the far-right AfD, is reportedly seeking a smaller budget and lower national contributions. Spain, meanwhile, emphasizes the need to maintain spending on cohesion, agriculture, and fisheries, alongside competitiveness and defense. The Irish presidency of the Council of the EU has noted consensus on new levies related to foreign carbon imports and electronic waste but faces strong opposition to other tax proposals.
Officials express a sense of urgency to reach an agreement, acknowledging that finding a compromise will likely become more difficult in the coming year due to upcoming elections. The success of Costa's tour hinges on narrowing down the options for new revenue streams and quantifying their potential yield to establish a ceiling for negotiations.